Wry Catcher
Diamond Member
- Banned
- #21
a sales tax gives everyone some skin in the game. Eliminating the income tax as in Fla, Tx, NH, Nevada encourages businesses to locate in your state, more business more sales more sales tax, better state services.
those with more money spend more money so they will pay more sales taxes.
Yes, the very poor will be impacted by this but they already pay sales taxes, so the impact will not destroy them. and new industry will create new jobs for many of them.
A very optimistic view. You posit that the savings by the very rich will be invested within the state and new industry's will thusly be created. How do you know this is true? Why wouldn't this money be invested in the emerging economies (India, Brazil, Indonesia) or used for vacations in Europe or Asia? Why do you believe it will trickle down to the poor?
If the very poor are impacted within the state, and the R's in Congress are able to reduce the benefits to the very poor (earned income credit, Medicaid, Medicare, SSI, SNAP, housing subsidies ) and state benefits are reduced, even a 4% (which Jindal projects) net reduction in spending money may put many families beyond the tipping point and more women and children on the streets.
your basic premise is wrong, conservatives do not want to reduce benefits for the poor, they want to create jobs for the poor so that the govt no longer has to spend OUR money feeding the poor.
The states with no state income tax seem to be doing quite well, while the states with the highest state income tax are going broke. you tell me why that is.
I don't know that, "states with no state income tax seem to be doing quite well, while the states with the highest state income tax are going broke" is true, or that only one cause creates the effect you seem to attribute to income tax. One might point out that federal income tax rates in the last century were high and we had periods of both boom and bust.